PHF was founded in 1994 when there was hope for the imminent creation of an independent Palestinian state. Its goals were to instill in young people the principles of democracy and human rights, to give them the tools to become leaders in the new state, and to keep Palestinian culture alive. However, as conditions on the ground worsened and people lost confidence in the peace process, and as the second Intifada erupted into violence, PHF was forced to redirect its energies and cut back on programming, while still maintaining its values and overall purpose.
In 1996 PHF monitored elections in the Northern West Bank. During this period PHF also sponsored a Heritage and Folkloric Exhibition that drew an audience of over 800, and Educational Workshops to promote knowledge of Palestinian history and culture.
Until the beginning of the second Intifada, PHF generated a large portion of its operating expenses by offering paid courses in English and Hebrew. Since 2004, however, this has become virtually impossible. Continuous curfews, desperate economic conditions, and travel restrictions between the nearby villages and the city of Nablus have severely limited PHF’s ability to generate income through language classes.